So this is a kind of a classic "How do I invest my lump sum?" type question with a little Trump twist.
Normally, when I have a big amount to invest I just increase my monthly taxable stock account contributions until I spend that lump sum down. All this Trump business is making me a little nervous; I'm a little concerned that the Administration is anti-globalization and trying to institute more protectionist policies. Are you guys changing your strategies? Do you think all of this blows over? Do you think that it won't really impact the general economy that much and that the markets will steadily rise? Or have you been looking at alternative investments?
So I've got about $150k sitting in a savings account that I need to invest (that's aside from an emergency fund). I make monthly contributions to a 403b to max that out and contributions to a couple college accounts and a taxable stock account with Vanguard- none of that has changed. Almost my entire portfolio is stock as I try to avoid investments that pay interest (ie I have no bonds, no CDs, etc). All my equities together total about $600k. I'm 36 and I expect to work full time another 10yrs and then hopefully go halftime for awhile and hopefully retire a little early.
Here are the options that I've come up with:
1) Do as I always have done and increase my contributions for the next 6-12 months until the money is all in the market and get it all working for me.
2) Just dump it in the market right now- (not excited about that; think the market is probably a little overvalued). I guess you just accept the idea that over the LONG term, the stock market is probably the best way to go.
3) Try to wait for corrections and try to time the market. I know, I know; but very tempting. I think a correction is around the corner.
4) Buy real estate and rent it out. I live in a college town, so I'm pretty sure anything I buy will get rented for sure. That said, not sure I wantthe headaches. I could hire a property manager, but that cuts into profits. Tax advantages are a plus. Also, given my 100% Equity portfolio, this gives me some diversification and I would think reduce some of my risk.
5) Crowd-funded real estate. Never tried it, but I'm certainly curious. I'm signed up for all the sites, but haven't had the guts to put money in yet.
So what do you guys think? Are you guys adjusting your strategies based on these political changes?
Normally, when I have a big amount to invest I just increase my monthly taxable stock account contributions until I spend that lump sum down. All this Trump business is making me a little nervous; I'm a little concerned that the Administration is anti-globalization and trying to institute more protectionist policies. Are you guys changing your strategies? Do you think all of this blows over? Do you think that it won't really impact the general economy that much and that the markets will steadily rise? Or have you been looking at alternative investments?
So I've got about $150k sitting in a savings account that I need to invest (that's aside from an emergency fund). I make monthly contributions to a 403b to max that out and contributions to a couple college accounts and a taxable stock account with Vanguard- none of that has changed. Almost my entire portfolio is stock as I try to avoid investments that pay interest (ie I have no bonds, no CDs, etc). All my equities together total about $600k. I'm 36 and I expect to work full time another 10yrs and then hopefully go halftime for awhile and hopefully retire a little early.
Here are the options that I've come up with:
1) Do as I always have done and increase my contributions for the next 6-12 months until the money is all in the market and get it all working for me.
2) Just dump it in the market right now- (not excited about that; think the market is probably a little overvalued). I guess you just accept the idea that over the LONG term, the stock market is probably the best way to go.
3) Try to wait for corrections and try to time the market. I know, I know; but very tempting. I think a correction is around the corner.
4) Buy real estate and rent it out. I live in a college town, so I'm pretty sure anything I buy will get rented for sure. That said, not sure I wantthe headaches. I could hire a property manager, but that cuts into profits. Tax advantages are a plus. Also, given my 100% Equity portfolio, this gives me some diversification and I would think reduce some of my risk.
5) Crowd-funded real estate. Never tried it, but I'm certainly curious. I'm signed up for all the sites, but haven't had the guts to put money in yet.
So what do you guys think? Are you guys adjusting your strategies based on these political changes?
Comment